Satyam Computer Services founder-chairman B Ramalinga Raju resigned from the IT major's board after admitting a multi-crore fraud in the company’s accounts.
In a notification to the stock exchanges, the Hyderabad-based IT firm said Raju and Managing Director Rama Raju had resigned early Wednesday and that the Securities and Exchanges Board of India (SEBI) had been informed.
In the regulatory statement, Raju said that the company had fraudulently incorporated a non-existent cash component and inflated the bank balance to reflect Rs.5,040 crores (Rs.50.4 billion) as against Rs.5,361 crores (Rs.53.61 billion).
''No board member had any knowledge of the real situation. Accrued interest of Rs 376 crore in books is non-existent. About Rs 1,230 crore was arranged to Satyam, but was not reflected in the books,” he said.
CNBC-TV18 reports that the account manipulation started years ago. "It was like riding a tiger, not knowing how to get off without being eaten," Raju said in his resignation letter to the company’s board of directors, in which he listed major financial wrong-doings over the years to inflate profits.
